23 July 2020
Following the publication of its statement on additional supervisory measures in relation to the COVID-19 pandemic, the European Banking Authority (EBA) published today Guidelines that make available to competent authorities a special procedure for the supervisory review and evaluation process (SREP) for the year 2020. The new Guidelines identify how flexibility and pragmatism could be exercised in relation to the SREP framework in the context of this pandemic.
The risk-driven approach put forward by these Guidelines builds on the existing requirements of the Capital Requirements Directive (CRD) and the SREP Guidelines and adapts them to the exceptional circumstances of the COVID-19 pandemic, while ensuring the exercise of supervisory judgement to the greatest possible extent.
These Guidelines, are addressed to competent authorities and elaborate on the key aspects of SREP for the year 2020: (i) focus of the pragmatic SREP; (ii) overall SREP assessment and scoring; (iii) supervisory measures; and (i) conduct of the SREP in cross-border contexts.
The development of these Guidelines relied on a close engagement with competent authorities to ensure that the content of these Guidelines was shared by the supervisory community early on in the 2020 SREP cycle. This engagement will safeguard and preserve convergent supervisory approaches and outcomes in the context of this crisis.
Note to the editors
These Guidelines have been drafted in accordance with Article 16 of Regulation (EU) No 1093/2010 (EBA Founding Regulation), which mandates the Authority to issue guidelines addressed to all competent authorities or all financial institutions and issue recommendations to one or more competent authorities or to one or more financial institutions, with a view to establishing consistent, efficient and effective supervisory practices within the ESFS, and to ensuring the common, uniform and consistent application of Union law.